Cybercrime in real estate has reached what the “2026 State of Wire Fraud” report calls “epidemic” levels. Americans lost $275 million in 2025 alone through real estate–related fraud, according to the FBI’s latest figures.
Behind those numbers are real victims. In 2024, Raegan Bartlo and her husband were preparing to move to West Virginia after finding a home that would offer them financial independence. Just days before closing, Bartlo wired a $255,000 down payment after receiving what appeared to be legitimate instructions from her title company’s attorney—complete with accurate timing, branding and transaction details.
It wasn’t until closing day that she learned: The funds never arrived.
“That’s when my world fell apart,” she said. “I froze. … It’s a horrible, horrible feeling to have all your savings stolen from you.”
Bartlo, who has worked in banking and cybersecurity, knew the risks—underscoring how sophisticated these scams have become as criminals increasingly leverage AI to deceive home buyers and sellers.
Real Estate Becomes a Prime Target
Real estate remains a favored target for cybercriminals because of high-dollar transactions and abundance of publicly available data, says Tom Cronkright, a real estate broker who co-founded the cybersecurity firm CertifID after being a victim of a $180,000 real estate scam in 2015.
AI is accelerating the threat by enabling more convincing impersonations—from emails that mimic tone to cloned voices and deepfake video messages, Cronkright says.
More than one in five consumers report receiving suspicious communications during closing, according to CertifID’s “2026 State of Wire Fraud” report. Meanwhile, 57% of 150 title and escrow companies say they encounter suspicious activity at least quarterly, with 60% reporting that fraud attempts are increasing.
It’s sparking a state of “wire fraud fear,” with nearly half of buyers delaying funds because of security concerns as they are “lying awake at night wondering if they sent their life savings to a criminal,” the report notes.
‘We Warn Every Client’
Brokerages have been responding with stronger education efforts, warning of the dangers. Some agents even ask clients to sign disclosures acknowledging scam risks. Others walk buyer and sellers through the closing process so they know when something might feel off.
Levi Rodgers, broker-owner of LRG Realty in San Antonio, Texas, says his team updates fraud training monthly about evolving threats. “These scams are constantly changing,” he says.
The attempts are becoming more frequent: “We’re getting hit weekly to biweekly,” he says.
Scammers are impersonating legitimate parties or exploiting routine workflows. In one case, Rodgers’ team uncovered a fraud attempt involving someone posing as a seller of vacant land. When they had asked for ID—a standard protocol when working with new clients—they noticed inconsistencies in the driver’s license when verifying with the real owner.
Rodgers also uses his company’s blog to warn clients about other growing scams—like fake utility bills, bogus property tax notices, home warranty scams and mortgage insurance schemes. While these may not deliver the same high-dollar loss as wire fraud, they rely on volume and urgency. Criminals count on people paying smaller charges without question.
The best defense, Rodgers says: “Verify independently and validate.” He adds that agents also can help by providing vetted vendors and contractors, reducing the risk of clients falling for fraudulent service providers.
Rodgers says he also keeps his real estate team aware of scams targeting agents, like phishing emails and fake leads designed to access their systems. “They’re coming through as leads to agents, then trying to get into your computer, hack your email and CRM,” he says.
Make Security Part of the Transaction
CertifID includes a platform to verify wire transfers in real estate. In 2025, the company blocked about 1,000 fraudulent real estate transactions, protecting $283 million in funds that scammers attempted to target.
His company’s consumer surveys show a desire for greater transparency on:
- How wire instructions are verified
- How identities are confirmed
- What safeguards are in place before funds move
He urges brokerages to standardize protections, including identity verification, secure communication channels and holding ongoing staff training. Ensure everyone knows recovery plans in case fraud occurs.
“Security has to be part of the deliverable of the transaction,” Cronkright says. “You wouldn’t buy a car without seatbelts or airbags … it’s just part of what you expect.”
CertifID recommends:
- Have verification protocols in place that move beyond email or phone confirmation alone.
- Communicate early about how clients’ funds are being protected. Sixty-one percent of consumers say they feel anxious about their funds during transactions: “Tell your clients how you are protecting them,” Cronkright says. “Explain your security measures at the first meeting, not the day before closing.”
- Use secure communication channels, like encrypted email or a transaction management platform whenever sharing sensitive information.
- Conduct ongoing training for agents and staff to stay alert to evolving threats.
- Identify recovery plans so agents know exactly what to do if fraud occurs. (e.g., contact the Internet Crime Complaint Center at IC3.gov or find tips at Home Closings 101).
Related: Cybersecurity Checklist: Best Practices for Real Estate Professionals
Don’t Let Your Guard Down
In Bartlo’s case, she recalls how quickly her real estate agent, title company and lender mobilized after discovering the theft. They helped her report the crime to the FBI’s Internet Crime Compliant Center while the bank attempted to trace the wire. “I was numb the whole time,” she recalls. “But they immediately jumped into action.”
Bartlo eventually recovered about half of her $255,000, but the rest was gone, without a trace, now even more than a year later. She tapped retirement savings to proceed with closing on the home—which triggered taxes and penalties she is still paying today.
As she headed to her delayed closing, she received another fraudulent email just days before. “It was the exact same method,” she says. “Same tone, same urgency.”
But her team had abandoned email communication, initiated extra verification checks and shifted to direct phone verification.
“We were prepared,” she says, hoping her story is one of caution that can help others be better prepared as well.
Listen to more of Bartlo’s story and how the real estate industry is warning clients about a rise in real estate scams.
